· Up to $500 million shareholder return: 7 cents per share ordinary unfranked dividend, plus an on-market buyback of up to $373 million

· $55 million for non-executive employee bonus

· Upgrade of A380 cabins and Melbourne Domestic lounge announced

· Evaluation of new ultra-long range aircraft for Qantas International

Qantas today reported an Underlying Profit Before Tax of $1,401 million and a Statutory Profit Before Tax of $1,181 million for the 12 months ended 30 June 2017.

The underlying result represents the second highest performance in Qantas’ 97 year history, down 8.6 per cent compared with last year’s record. It is slightly above the guidance range provided in early May this year, mainly due to strengthening of the Group’s domestic businesses. A drop in statutory profit before tax of $243 million reflects that the FY16 result included the gain on sale from the Sydney Domestic Terminal.

Overall, the FY17 performance shows the Qantas Group’s margin advantage over local and global competitors[2], which has been underpinned by completion of its three year transformation program.

SUMMARY OF RESULT

All parts of the Qantas Group delivered strong returns in FY17.

In the domestic market, Qantas and Jetstar combined reached a record $865 million Underlying EBIT, making them again the two most profitable airlines in Australia with around 90 per cent of the total domestic profit pool.

Qantas International, which has faced high levels of capacity growth in the broader market, saw an improvement of conditions in the second half; it posted an Underlying EBIT of $327 million. Continued strength in its core markets helped the Jetstar Group deliver the second highest profit in its 13 years of operation.

Qantas Loyalty booked a record $369 million Underlying EBIT on a 4 per cent increase in revenue as it continued to diversify its earnings.

The Group met all the objectives of its financial framework, reporting a 12-month return on invested capital of 20.1 per cent. Another $470 million in transformation benefits were delivered, completing the three year program and outperforming the $2 billion target by $125 million.

The Qantas Transformation Program has underpinned these results and enabled the Group to outperform its key domestic and international competitors.

This performance means Qantas is able to reward shareholders, recognise the hard work of its people and invest for customers.

Group CEO Alan Joyce said the result marked completion of a turnaround plan that has repositioned Qantas as one of the most profitable airline groups in the world.

“Three years ago, we started an ambitious turnaround program to make the Qantas Group strong and profitable. We tackled some difficult structural issues, became a lot more efficient and kept improving customer service.

"Today’s announcements show this plan has well-and-truly paid off. It’s delivered $3.5 billion in cumulative underlying profit, record customer satisfaction and the opportunity for Qantas to grow.

"We operate in a very competitive environment, so continuous improvement is crucial. Being more efficient is part of our culture and we’re now targeting an average of $400 million in gross benefits a year.

“We have a plan to keep delivering sustainable returns well into the future. We’re investing in lounges, Wi-Fi and cabin upgrades; looking at new aircraft to evolve our network; and diversifying into new businesses like insurance and financial services.

“Our people remain central to our success, and that is why it is so pleasing that we are able to grant another bonus to around 25,000 non-executive employees to mark the successful completion of the turnaround program,” added Mr Joyce.

[1] Refer to the Review of Operations for definitions and explanations of non-statutory measures. Unless otherwise stated, amounts are reported on an underlying basis.

[2] IATA’s December 2016 profit outlook forecasts an average industry margin for 2017 of 4.1 per cent. Qantas Group reported an operating margin of 9.9% for FY17 (calculated as Group Underlying EBIT divided by Group Total Revenue).

25 Aug 2017 10:29 AM |
Anonymous

This year we celebratethe 60th Anniversary ofthe Commerce Agreement between Japan and Australia - a key foundational component to the strong relationship and mutual trust that we share today.

Looking back, we can see how Japanese investment has helped shape regional Australia through projects in the Pilbara and the Bowen Basin. More recently we have seen two-way investment extending into services and technology such as the finance sector with Japanese banks likeSumitomo Mitsui Banking Corporation having a
have a major presence in Australia.

24 Aug 2017 1:20 PM |
Anonymous

On September 26, TERRA will also be opening a New Zealand-themed restaurant, "ZEALANDER", on the 5th floor of the Shin Marunouchi Building.We hope to share with you our passion for New Zealand cuisine through a casual dining experience in which youcan enjoy fresh New Zealand food paired with premium New Zealand wines.

24 Aug 2017 11:06 AM |
Anonymous

On August 26, TERRA will open their new restaurant "SOUTH" at Yebisu Garden Place 39F. "SOUTH" is a unique restaurant that focuses on Australian and New Zealand seafood, celebrating fresh ocean flavours with seasonal vegetables. Adding to the experience is Australian fine wine and the night view of Tokyo from Ebisu.

At “SOUTH” you will have the opportunity to enjoy pure ocean flavours in the heart of urban Tokyo.

22 Aug 2017 12:21 PM |
Anonymous

This morning, as part of her first international mission as Premier, The Hon Gladys Berejiklian addressed a select group of ANZCCJ members and guests at a breakfast event in Tokyo. While this was her first visit to Japan as Premier she had visited Japan previously in her role as NSW Minister of Transport and described Japan's transport system as 'a different world'.

Premier Berejiklian touched on a few of the reasons why NSW and Japan have such strong ties - a mutual trust, investment on both sides, sharing the Olympic experience, strong infrastructure and financial sector growth - before engaging in an engaging Q&A session with attendees.

From the Premier's answers, it was made clear that there are plenty of opportunities for Japan and NSW to work together in the future with a focus on joint projects in infrastructure and investment for businesses of all sizes. Japanese companies were urged to think about who they would like to partner with in NSW, to make those connections through organisations such as ANZCCJ.

15 Aug 2017 12:47 PM |
Anonymous

Tokyo based MS&AD Insurance Group Holdings, Inc. have acquired an approximate 6.3% of outstanding shares of Challenger Ltd. for 44 billion Japanese yen (500 million AUD). MS&AD is the largest general insurer in Japan and has expressed an aim to grow its holding over the next 12 months to 10%.

Challenger has been working with Mitsui Sumitomo Primary Life Insurance Company Limited (MS Primary), a subsidiary of MS&AD, since 2016 and expects this new development in their strategic relationship to broaden their opportunities in the Japanese market. Likewise, this partnership also works to offer MS&AD invaluable insight into the Australian model of superannuation whilst also expanding their portfolio.

Challenger is a Platinum Sponsor of ANZCCJ and its Japan Offices are headed by Executive Council member, Kohei Tsushima. According to Tsushima, Challenger's priority is to "to grow our funds management business and extend on our strategic relationship with MS&AD. This is a long term commitment by Challenger to invest in Japan."

Further information regarding this deal can be found here.
Information regarding Challenger can be found on their website here.

31 Jul 2017 2:23 PM |
Anonymous

Thank you to Andrew and the Chamber for the opportunity to speak at this important celebration dinner marking the 60th anniversary of the Australia Japan Commerce Treaty.

I too would like to pay my respects to our sempai for their efforts. And while I am in no way understating the gratitude I feel to politicians and bureaucrats for creating this treaty, I believe we should also thank Japanese consumers for their role in the development of trade between our two countries. Japanese consumers support of our products and services is why we are here today.

And naturally, we should also highlight the role played by producers, customs brokers, people behind the scenes, SMEs who took the risk to import and put up with all the hiccups… shosha, banks for having invested in trade and business.

While reflecting on history is important, I would prefer to focus on the next stage. I used to be one of the young ones but I am firmly in the ‘oldies’ group now – especially given that I am a grandmother!! And membership of the older group comes with an obligation to set things up for the younger generation. Easier said than done.

Part of me feels the Australia Japan relationship is a little lacklustre. Part of me feels excited. Part of me is worried we are not doing enough. Part of me is troubled that kangaroos and AKB48 are symbols of our two countries. Part of me is worried we still don’t have dual citizenship status for our Australian-Japanese ‘half’ children. Another part of me wants to do something to ensure we are not resting on our laurels and relying too much on what has happened and not what lies ahead. I hope I can count on you to help me bring about change.

In preparing for tonight, I used social media to request input. What I received was an amazing list of ideas and suggestions from a range of different people. The key themes rely on our building a stronger base for young people. People suggested we move beyond focusing on what we can ship or sell to the other country and that we focus more on joint business development and working together, in Australia and Japan but also in third countries.

For example, in the tourism sector. Perhaps Australia can help Japan develop its tourism strategy using examples of successful tourism policy as Japan moves to shift the flow of tourists from the main cities to regional Japan. Film-making – Japan has great ideas, Australia has great production studios. Japan is due to host major sporting events in the next few years - RWC, Olympics and Paralympics and the Masters Games. Australia has expertise in sports for business. JVs in agriculture, STEM…and the list goes on…

We need to lead by example and give our everything to ensuring we create more opportunities for young people to actually meet and exchange ideas.

To that end, the New Colombo Plan, the AJBCC/JABCC Future Leaders program and the Australia Japan Youth Dialogue are key initiatives. But I hope to do more.

I hope you will all join me in making the next few years of the Australia Japan relationship strong and sexy, robust and challenging, profitable and fun!!

31 Jul 2017 10:53 AM |
Anonymous

SPEECH DELIVERED BY ANZCCJ CHAIR ANDREW GAUCI
25 July 2017

Again, thank you Ambassador Court. It is very fitting to have you speak tonight given the critical role both your father and yourself have played in fostering key relationships in Western Australia that have made the Japan Australia connection so much stronger. I do note that last year Qantas showed great wisdom by putting on a direct flight to Australia's greatest city and my hometown, Melbourne, and Japan Airlines also see where the future lies as they will commence a direct flight later this year.

From the Japanese side we have with us tonight Mimura san, Kojima san and Aisawa sensei who over many years have been tremendous guardians of the Japan Australia relationship and have helped drive initiatives that have brought our countries closer together.

Odawara sensei, Parliamentary Secretary for the Ministry of Foreign Affairs of Japan has also kindly joined us tonight and we look forward to his support in helping us reach new heights in the future.

As Ambassador Court indicated the 1957 Commerce Agreement was the birth of not only a strong and trusting partnership between our two countries, but a true and lasting friendship as well.

60 years ago our two nations came together to achieve something remarkable. At a time not so long after significant conflict and with skeptics raising opposition, a few visionaries from Japan and Australia had the foresight and wisdom to recognise that our futures were always going to be brighter when we worked together and built relationships based on trust and exchange.

In Australia we realised that our future was, and is always, going to be linked intimately with Asia. We could not try to ignore this part of the world and stay in our own little bubble. There was a need to build strong and lasting partnerships with our neighbours in order to foster a more prosperous region for all.

Following this realisation, our forebears saw an opportunity in a people and country that was reemerging after a turbulent period. It may be difficult to comprehend now but back then there were many countries around the world who grossly underestimated what a relationship with Japan could bring. But tonight we must thank those who were brave enough to look beyond and see what could bind us together, rather than what could separate us.

As a result of this way of thinking, on the 6th July 60 years ago, the Australia-Japan Commerce Agreement was signed. When it came into effect many in both Australia and Japan could not begin to imagine how it would turn out – it was the first agreement of its kind for Japan. However, with the benefit of hindsight we now know just how significantly it would shape our ongoing relations.

The commercial agreement set the foundations for a relationship which would continue to develop and strengthen over the following decades. The shared values and common goals that bind us together led us to forge links over trade, security, and to cooperate in our shared belief in a rules-based international order.

Then in January 2015, following the traditions established in 1957, the Japan-Australia Economic Partnership Agreement entered into force. Much like the 1957 treaty, this new arrangement broke new ground as it was one of the most liberalising trade agreements Japan has ever signed. It reinforced the strength and uniqueness of our relationship as we tore down old barriers and worked to establish a new era of free and open trade relations.

These treaties have been key steps on a long journey that has seen our two nations become indispensable trading partners as well as good friends. From humble beginnings, Japan has become Australia's second largest export market, worth $39 billion dollars annually, our third-largest trading partner, and as Ambassador Court noted, our largest source of foreign direct investment.

Much like the diverse nature of our two countries, trade between us covers a wide range of goods and services. From natural resources, to agricultural products, to automobiles and electronics, the products and ideas that move between us have defined the way that we live our lives and built links that extend beyond commerce alone.

So tonight as we reflect on these past 60 years, it is clear that the signing of the Australia-Japan Agreement on Commerce was instrumental in laying the foundations upon which we could build this wonderful friendship. Much like those who worked tirelessly to bring this vision for a trade relationship into reality, we too are here tonight because we believe in the opportunities that we can offer each other. Looking around at those present here tonight, I am very confident in saying that I believe our future is bright indeed.

There is however much work still to do. We need to open the eyes of Boards in Australia to the real and exciting opportunities that exist in Japan. The glitzy lights of China can look enticing but often don't deliver the depth of relationship, win-win investment, quality of product or shared values that exist when working with our Japanese partners. As an example, despite being in Japan for nearly 30 years, the Board of the organisation I work for, Lendlease, has been slow to understand Japan. However, with high level visits over recent years have come eye opening experiences. We are now embarking on a large scale Joint Venture with a Japanese telecoms player in the US, have Mitsubishi Estate as partners on real estate developments in Sydney and Melbourne, have the likes of Development Bank of Japan, SMBC and Mizuno as integral partners and have grown our team in Japan to over 400 people. As a chamber we must work harder to open the eyes of many more Australian Boards.

Similarly, the profile of Australia in Japan has room to grow. The food security provided by the likes of MLA can not be underestimated, the contribution of Rio Tinto to Japanese industry not overlooked and going forward the smarts and global experience of companies such as Macquarie, ANZ and CBA should be leveraged to help drive Japanese success further.

The great thing is that through the 1957 agreement we are in a position to make things happen. It is cause to celebrate.

Finally, I would like to introduce one of the most important Australians, in fact the most important Australian in the Australia Japan relationship over the last 20 years. She has worked tirelessly fostering the deepest relationships any Australian has with senior Japanese politicians and executives. She has guided government on both sides to come to compromise so that important initiatives such as JAEPA have come to fruition. She has brought Japanese farmers to Australia in an effort to improve productivity and understanding, she has provided hope and encouragement to many in Tohoku since the terrible Tsunami. She led the Chamber for 6 years and is owed much. Melanie Brock please come to the stage.

28 Jul 2017 2:56 PM |
Anonymous

THE HON STEVEN CIOBO MP
Minister for Trade, Tourism and Investment
REMARKS
LAUNCH OF THE REPORT
JAPANESE INVESTMENT IN AUSTRALIA – A TRUSTED PARTNERSHIP

I am delighted to launch Austrade’s report Japanese Investment in Australia- A Trusted
Partnership today.

This report recognises and celebrates the significant role of Japanese investment in Australia. It reinforces the clear message that Australia welcomes productive foreign investment, consistent with our national interest, from around the world, including Japan. While recognising the long history of our investment relationship, importantly, it looks to the future and to new areas of investment cooperation emerging with Japan.

The launch coincides with the 60th anniversary of the Agreement on Commerce signed by our two countries in July 1957.

This agreement set the foundation for closer bilateral ties between Japan and Australia, one built on trust, shared values and common approaches to economic cooperation.

The agreement had its critics, but it was a clear sign that Sir Robert Menzies’ Government recognised a strong trade and investment relationship with Asia would be a key driver of Australia’s future prosperity.

Some of Australia’s largest export industries in resources and energy, such as iron ore, coal and LNG, were underpinned by significant and sustained Japanese investment. Think of the opening up of the riches of the iron ore of the Pilbara, the coal of the Bowen Basin and the LNG of the North-West Shelf.

Long-term purchase contracts by Japanese buyers, in particular, from trading houses, major Japanese steel mills and power companies, were a catalyst for Australian and other
international joint venture partners to invest in these multibillion dollar minerals and energy projects.

These large and complex resources and energy projects have driven regional development, created tens of thousands of jobs for Australians, and generated billions in export income. They also fuelled the rapid industrialisation of Japan, boosting prosperity for the people of Japan and bringing our countries ever-closer through shared commercial, political, strategic and people-to-people links.

Today, Japan is our second largest export market and second largest source of foreign direct investment after the US – and its investment in our country continues to grow.

The report highlights that from 2010 and 2016, the stock of Japanese direct investment in Australia increased by 78 per cent to over A$91 billion.

In terms of reinvestment, Japanese companies lead the way. They invested around A$4
billion in 2016 into Australian subsidiaries, greater than reinvestment from UK and US
companies. As these Japanese companies maintain an ongoing presence in Australia, their investments are diversifying into new sectors.

In innovation and technology, Australia continues to be an ideal testing ground for Japan’s R&D, and a platform for expansion into other Asian and Western markets.

NEC and Fujitsu representatives are here with us today and they have both established major R&D hubs in Australia which are an integral part of technology solutions. These hubs also tap into Australian talent, and look to the jobs of future in the tech sectors.

We are also seeing major Japanese companies invest in Australia’s services sector and in manufacturing.

Services are an important part of the Australian economy and equates to around 75 per cent of our GDP.

I am delighted to be here today at Oji Fibre Solutions soon-to-be-completed world-class
manufacturing facility, the result of A$72 million investment that will create more than 70 jobs by 2019.

Oji Fibre Solutions’ new facility is a good example of innovation that will introduce new manufacturing technology, opening up new prospects for food exporters in Queensland, the Northern Territory and New South Wales.

Set to operate with a 5 star Green Star environmental rating, it will consume less water and electricity than comparable packaging companies.

Oji’s packaging technology enhances Australian exporters’ premium goods offering to highend consumers in Asia, by ensuring the goods arrive in pristine condition. That means this Japanese investment not only creates jobs directly in the facility, but also boosts the chance for more jobs in the high-end food production sectors in Australia.

Investments such as Oji’s are a very real example of how the Japan-Australia Economic
Partnership Agreement (JAEPA), or the Japan-Australia FTA, is delivering prosperity and jobs around our country.

By providing better access for Australian agribusiness and food and beverage exporters,
JAEPA delivers not just benefits for primary producers – and we are proud that Australia is the only major agricultural exporter to have a high-quality FTA with Japan - but is stimulating new rounds of business investment with jobs during the construction phase and new manufacturing jobs on an ongoing basis

So I would like to congratulate Oji Fibre Solutions for their foresight in establishing this
state- of-the-art manufacturing facility.

It is yet another example of the many and varied ways our two countries cooperate in
commerce, for mutual benefit. Please accept my best wishes for the success of this venture and for the further development of your links within Australia.